On April 11, it became known that Urban One had reached an agreement with Cox Media Group that would bring to the multimedia company led by Alfred Liggins III Country KKBQ “93Q,” Classic Rock simulcast KHPT-FM & KGLK-FM “The Eagle” and Classic Country KTHT-FM 97.1 in Houston.
The three CMG stations will be paired with KBXX-FM “97.9 The Box” and KMJQ-FM Majic 102.1.” Notably absent from the discussions was KROI-FM 92.1, which presently airs the Black Gospel “Praise” programming Urban One offers across several markets. That’s because KROI, and KTHT, are being divested to adhere to the FCC’s local ownership limits and were placed in the “Sugarland Station Trust,” led by Scott Knoblauch.
Yet, even as KROI and KTHT were placed in the trust, Urban One confirmed that has entered into an agreement to sell KROI “to a minority-owned broadcaster that is a new entrant to the Houston market.” All eyes turned to the company that recently acquired a pair of other FMs — divestitures tied to Cox Media Group.
Late Thursday, that unconfirmed chatter turned to a verified buy for Spanish Broadcasting System.
A “material change report” distributed by SBS’s investor relations team confirmed that on April 3, “Spanish Broadcasting System SouthWest, Inc.” and “SBS Houston Licensing, Inc.,”
which are SBS subsidiaries using the name SBS SouthWest, entered into an asset purchase agreement to acquire KROI from Urban One entities “Radio One Licenses, LLC” and “Radio One of Texas II, LLC.”
The purchase price is $7.5 million — plus or minus “certain customary prorations and adjustments.” A $375,000 escrow deposit has been made by Miami-based SBS.
SBS will pay the remaining balance, net of the escrowed funds, with immediately available funds and instruct the escrow agent to release the escrow deposit to Urban One.
Closing is anticipated for the third quarter of 2023.
The acquisition of KROI by SBS, while involving Urban One as the owner, indirectly involves Cox Media Group because it is the seller of 93Q, KTHT and The Eagle. However, SBS directly engaged with CMG through a divestment trust led by Elilot Evers of Houlihan Lokey when it ultimately proved successful in its efforts to purchase WPYO-FM in Orlando and WSUN-FM in Tampa.
SBS paid a total price of $12.5 million for both WPYO and WSUN.
